Why is it scary? It doesn't propagate automatically like a virus, it's just a game with strangely real consequences. It's a trojan so just don't install & run everything you find. Anyone can write a simple application that would wipe out a users home folder, how is this any different?
You would need to be pretty stupid to miss the warning that it will delete your files when it launches.
I would anticipate this ending up in the 10.6 malware list that Apple added to Snow Leopard.
Re:co